The increased demand for oil and gas boosted the profits of the Canadian company Enbridge during the first three months of the current fiscal year.

Energy demand rose, and prices increased unprecedentedly—and still are—following the Russian invasion of Ukraine on February 24.

The profits of the oil pipeline giant Enbridge climbed to $1.927 billion, compared to $1.9 billion in the same financial quarter last year.

Europe is striving to find urgent alternatives to Russian gas to ensure long-term energy security.

Jump in company profits

Enbridge said profits reached 95 cents per share during the quarter ended March 31, compared to about 94 cents per share in the same period last year, according to the Energetic City website.

The company—headquartered in Calgary, Canada—added that the cash flow provided by operating activities reached $2.94 billion during the first three months of the year, compared to $2.56 billion during the same period of 2021.

Enbridge supplies about two billion cubic feet of gas daily to 4 liquefied natural gas plants on the US Gulf Coast.

The company signed supply agreements for gas to 3 other projects on the US coast, which could add up to 7 billion cubic feet of gas daily and more than $2 billion in new investments.

Enbridge CEO Al Monaco said that increased energy demand, along with weak investments in new supplies, contributed to a shortage in available quantities, and thus a rise in prices.

He added in a statement: "The global energy crisis reinforces the fundamental role that traditional power generation sources will play for decades to come."

He continued: "Now, more than ever, it is clear that all forms of traditional and low-carbon energy are essential to meet rising demand, while ensuring access to energy at affordable prices and in a safe, clean, and reliable manner for all segments of society."

Hydrogen production and export

Enbridge is working on developing a facility for producing and exporting hydrogen and ammonia, in partnership with Humble Midstream in Texas.

Vince Paradis, Vice President of Business Development at the company's US operations, said that the final investment decision will depend on customer support and regulatory approvals, but the investment cost of the project is expected to range between $2.5 billion and $3 billion, with an annual production capacity of one million tons of ammonia, according to Reuters.

Enbridge entered into a partnership with Lehigh Cement and Capital Power to transport and store its carbon emissions starting from 2025.

Company spokesperson Jesse Simko expects to invest hundreds of millions of dollars in carbon transport and storage infrastructure.

The Canadian government aims to reduce carbon emissions in oil and gas by 42% by 2030.

Enbridge's adjusted profits for the first quarter of this year reached $1.32 billion or $0.65 per share, compared to $1.24 billion or $0.63 per share in the same period of 2021.

The company transports about 20% of the total gas consumed in America and most of Canadian crude exports south of the border.